This was published 7 years ago
Interstate bidders slug it out for Bendigo retail investment
MARKET WRAP
Sales
Bendigo: Bidders from Sydney, Melbourne and Perth piled into an auction for 269-271 Hargreaves Mall, which eventually sold for $965,000 representing a yield of 5.9 per cent, Gross Waddell's Alex Ham and Benjamin Klein said. A group from Sydney ended up the successful bidder for the shop leased to Cotton On Clothing for $57,685 for five years with options. "Investors nationwide [are] looking outside their vicinity to secure investment properties," Mr Ham said.
Bidders from Sydney, Melbourne and Perth piled into an auction for 269-271 Hargreaves Mall.
Kew: A double-storey building leased to Crust Gourmet Pizza at 327 High Street has sold for $1.3 million on an indicative 4.5 per cent return. The typical Victorian shopfront includes an upstairs one-bedroom apartment. Crust has a five-year lease with two further five-year options providing income of $43,264 plus GST. The apartment was unoccupied but the vendor offered a 12-months annual rental guarantee from the settlement date set at $15,600, to give a combined rental income of $58,864. Gray Johnson's Rory White said two similar properties close by has also recently sold with strong demand.
Oakleigh: A modern showroom/warehouse on a 330 sqm site at 261 Huntingdale Road has sold for an impressive $1.2 million, Rodney King of Crabtrees Real Estate said. The former electrical goods factory outlet near the northern end of Huntingdale's shopping precinct was snapped up by a private investor.
A double storey building leased to Crust Gourmet Pizza at 327 High Street has sold for $1.3 million.
Narre Warren: Westfield's Fountain Gate Shopping Centre is driving neighbouring developments. A developer has paid $4.5 million for a substantial site on the western side of Victor Crescent just north of the intersection with Verdun Drive. Knight Frank's Tim Grant and Andrew Greenway sold the property via an expressions of interest campaign. The 11,220 sqm site offered a flexible Commercial 1 zoning.
Derrimut: In the western suburbs, a local developer paid $6.23 million on a 6.9 per cent yield for a 5947 sqm office and warehouse facility on a 1.1 hectare site at 337-349 Foleys Road. Savills Australia's Chris Jones and Ben Hegerty negotiated the deal with a five-year lease in place to Frucor Beverages at a current passing net rental of $433,000 per annum. Savills' research manager Monica Mondkar said industrial yields have firmed steadily over the past five years with record sales in the past two years accelerating the downward pressure to a point where sub 7 per cent transactions were now common.
Notting Hill: The Property Advisory has snapped up a premium leased industrial facility within the proposed Uni Central Business Hub for $4.1 million. The property at 53 Duerdin Street is a yet to be constructed 1300 sqm high tech facility featuring an office fit out, ancillary warehouse and 37 car spaces. It sold on an initial yield of 7.6 per cent after Strikeforce AMC signed a six-year lease term, CBRE's Rory Hilton and Chris O'Brien said.
Mornington: Six bidders fought it out for a prime new medical centre at 319 Main Street. The property, with a 10-year lease in place, sold at auction in front of a 100-strong crowd for 4.025 million representing a yield of 4.59 per cent, Vinci Carbone's Joseph Carbone said. The campaign generated 110 inquiries over a four-week period with more than 25 inspections. "Yields of 4.5 per cent are the new norm," he said.
Heathmont: Canterbury Road is proving to be one of Melbourne's most in-demand retail strips. The tightly held strip has seen several transactions in the past six months with yields of less than 3.5 per cent, Gorman Commercial's Stephen Speck said. Now, another store at 134 Canterbury Road has sold on a record low yield of 2.4 per cent. "While the 2.4 per cent return on the current rent of $21,364 is considered extremely low, buyers are seeing long-term value in being able to buy stand-alone retail property in quality strips for less than $1 million," he said.
South Melbourne: A private investor fought it out with several bidders to pay $2.1 million for an unrenovated two-level office building at 147-149 Montague Street. Knight Frank's Andrew Hansen, Ben Hackworthy and Danny Clark said the price equated to a land value rate of $6213 per sqm.
Campbellfield: A 950 sqm office-warehouse in Melbourne's north has sold for $100,000 more than when it previously sold in November 2013. Colliers International's Damian Marinelli said the buyer of 164A Northbourne Road was attracted to the impressive hardstand component to the facility. They paid the vendor Dowcon $920,000 + GST for the 950 sqm facility. In another deal, Stephen Ryan sold unit 33 at 640-680 Geelong Road in Brooklyn for $1 million to H&H Tech with vacant possession.
Leases
Springvale: Bayside-based Victorian Touring Coaches has leased a 2346 sqm office warehouse located on a 7200 sqm site at 9-15 Longford Court. Crabtrees Real Estate's Chris McKenzie negotiated the five-year lease, with two further five-year options, at an annual rent of $185,000 with 3 per cent annual rental increases. VTC will relocate from a smaller site in Moorabbin.
Dandenong South: Pellicano has secured three deals at its M1 Industry Park in just one week. Escalator Safety Services, Funky Imports and Independent Inspection and Testing Services have each leased office warehouse units at 92-100 Monash Drive, ranging between 302 sqm and 330 sqm Leasing rates exceeded $100 per sqm with minimal to no incentives, according to Pellicano, Knight Frank's George Linn and Crabtrees Real Estate's Megan Miles. Renato Pellicano said a further seven units were approaching completion in stage two at 72-80 Monash Drive.
Dandenong: Popular Chinese restaurant The Dumpling Chef has secured a large factory equipped for food production at 1/23 Egan Road in a deal negotiated by Ryan Amler and Joshua Colosimo of Ray White Commercial Oakleigh. Mr Amler said the business had several restaurants in Mill Park and Westfield's Plenty Valley and Bayside shopping centres. Dumpling Chef took a 3 + 3 year lease at net rental of $39,600 per annum plus GST and outgoings
Brooklyn: Ambulance Victoria has leased about 1100 sqm at 17 Link Court for gross face rent of $81 per sqm. Colliers International's Stephen Ryan said the emergency services organisation signed a 12-month lease. Meanwhile, Vincent Tran and Ben McKendry have sub-leased part of Level 5 at 468 St Kilda Road to 4DX on behalf of Synergy Metals. 4DX will pay gross face rent of $410 per sqm.
Movers
Sam Kandil has been appointed as Knight Frank's head of residential project marketing in NSW and Chris Litfin has been made head of residential project marketing in Queensland. Meanwhile, Anthony Choi has joined Colliers International in the role of senior executive in Melbourne after several years with Teska Carson.
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